A five year financial plan for Landworks Asia Inc

EXECUTIVE SUMMARY: Landworks Asia Inc. was organized to operate as real state developer. The company’s main activities are the development, management and sale of various real state properties such as building, houses, apartments, and other structures. According to Top 7000 corporations, Landworks Asia is classified as a large corporation, with total assets of 523,133,398 and total numbers of Regular employees of 25 and 5 casual employees. Landworks Asia Inc. is an affiliate of and incorporated under Excore Inc. both incporated are domiciled in the Philippines and are domiciles in the Philippines. It is a stock corporation and is operated for the purpose of making profit. Its revenues are derived from contracts and buying or selling of real state properties. Company’s vision is to become a major provider of affordable first home developments in the country. It obligates to contribute to nation-building by uplifting the living conditions in every development project and to improve the socio-economic environment by supporting environment conservation programs, developing and maintaining environment friendly communities. According to the 5-year analysis of the proponents the company is found to be highly leveraged. According to the company’s debt ration, more assts are being provided by their creditors thus only 10% of the total assets are from owner’s equity. Moreover, the company has incurred a negative working capital turnover because their current liabilities outweigh their current assets giving them negative results on working capital and making the company very illiquid. The accumulated obligations to creditors show the firm’s inability to efficiency handle their liabilities. The noticed liquidity problem of the company is being supplemented more with the poor capability of the receivables to be converted into cash. The receivable is illiquid for it cannot be easily realized because the company allows installments basis of paying the contracted price. The course of action recommended by the proponents was to have additional capital stock and amend their new Articles of Incorporation. Likewise, to improve the company’s receivable the proponents suggest buying new heavy equipment rather than leasing it. The decision made by the proponents was backe up with the capital budgeting made. According to the pro-forma statements, as long as the company can meet the forecast sales and its assumptions, it can implement its course of action. Profitability of the company will increase and operation and be stable.

Filipiniana